And where is Nifty heading on the weekend with new Option Series expiring on 21 Nov 2019?
In yesterday’s technical analysis we had expected a range-bound move of Nifty with volatility. Today Nifty opened at 11,858.75 with a gap-up gain of 18.3 points but witnessed profit booking at days high at 11895.65 as expected, taking nifty to day’s low at 11,802.65 (Demand Zone). Nifty closed in green with a net gain of 31.65 points at 11,872.10 at the end of the day, forming a bullish candle on the daily chart. The FIIs who were bearish today with the selling of -562.05Cr while DIIs were the net buyers with 82.74 Cr. From the Nifty 50 stack, only 21 stocks advanced and 28 stocks declined and 1 remained unchanged.
Today’s closing is above daily Pivot at 11,870, weekly Pivot at 11,930.8 and above 200 DEMA at 11,324. Stochastic is at 25.11 (close to Oversold Zone), RSI is at 60.10 while MACD is still above zero with a bearish crossover indicating the correction and consolidation phase. Nifty has taken support at 23% Fib with good buying indicates the Nifty bullish structure is intact in the midterm. If the index manages to sustain above 11,945, then we may see its bullish journey towards 12,000 to 12,100. Nifty closing below 11,790 on EOD basis may take it towards 11,707. The daily resistance levels are at 11,893, 11,905, 11,945, 11,982 and 12,005 while as support levels are at 11,855, 11,814, 11,786, 11,757 and 11,707 for intraday trading. Looking at current immediate support and resistance levels at 60 minutes chart the next day trading range seems to be between 11,760 to 12,050.
On the Options front in the new series of 21 Nov, Put writing was seen across 11,500 to 11,900 levels while Call writing was seen at 11,900 to 12,500 levels indicating the shifting of support and resistance levels on both sides but having wide range indicates volatility in the coming session. Looking at the Open Interest data and the PCR at 1.02 the market range seems to be in the range of 11,750 to 11,950 for intraday with some correction and consolidation. Profit booking is expected as Nifty approaches 11,950, which may turn market volatile and choppy in intraday. The other inputs to impact the market are Q2 results, macro data along with domestic and international cues.
Technical analysis with a sound understanding of the market is the key to trading success, however, sometimes market forces are stronger than the past analysis. Unexpected (domestic or international) factors make the technical analysis go haywire for a while, hence we have to monitor fresh data and new dynamics of the market during trading hours to consistently make money.
We trust the information will be helpful in your own analysis of the market and make trading a profitable and better experience. This analysis has been shared for educational purposes. Please seek your financial adviser’s guidance before trading or investing.
Happy Trading and Keep investing safely!
